Adopted Budget - Bedford County, Virginia

County of BedfordFund Balance PolicyAdopted June 27, 2011• Unassigned Fund Balance consists of the portion of unrestricted fund balance thathas not been committed or assigned for other uses; therefore it is available to spend infuture periods.A. The Government Finance Officers Association recommends that at a minimum, thetotal of committed, assigned and unassigned fund balance in the General Fund beavailable to cover at least two months of operating revenues or expenditures. TheCounty sets the level of fund balance needed to mitigate risks and minimize costassociated with debt as follows:The level of unassigned fund balance at each fiscal year end shall be set at ten percent(10%) of the next fiscal year’s General Fund operating expenses.Ten percent (10%) is identified as the minimum amount needed to safeguard theCounty’s financial stability. This level, when combined with committed and assignedbalances, provides the County with sufficient funds to operate in excess of twomonths without interrupting service levels.B. Appropriations from the fund balance below the minimum of ten percent of operatingexpenditures shall occur only in the event of emergency needs as approved by theBoard of Supervisors.C. Unassigned fund balance amounts that exceed ten percent may be appropriated forCapital Improvement, Self Insurance Reserves, and other items as deemed necessaryby the Board of Supervisors.D. Fund balance shall be evaluated during the annual budget process. It shall be the goalof the Board of Supervisors to adopt a budget that maintains the target establishedherein.E. When both restricted resources and other resources are available to be used for thesame purpose, it is the County’s policy to use restricted resources first, and thencommitted, assigned and unassigned fund balance as they are needed.IV.Policy ComplianceThe Fiscal Management Department shall submit an annual report to the Fiscal ManagementCommittee upon completion of the audit. If the County does not meet its target, acompliance plan shall be submitted to the Board of Supervisors for approval which will meetthis policy within three fiscal years.